Michigan House Democrats pass right-to-work repeal, prevailing wage restoration

Michigan House passes right-to-work repeal, prevailing wage restoration Beth LeBlanc The Detroit News Lansing — The Democratic-led Michigan House approved a package of bills Wednesday repealing the state's decade-old right-to-work law and restoring prevailing wage requirements for government contracts, reversing two key policies enacted in the last decade by the previous Republican-majority chambers. The right-to-work repeal for the public and private sectors includes $1 million in appropriations to make the legislation referendum-proof, a maneuver that Gov. Gretchen Whitmer promised to veto when she took office in 2019. Whitmer has vetoed legislation in the past based on the inclusion of the referendum-proof maneuver. Republicans used the same tool when they passed right to work 10 years ago. The Democratic-controlled Michigan House of Representatives voted Tuesday to repeal the state's decade-old right-to-work law that made paying union dues optional in workplaces with collective bargaining agreements. The vote took place after an hour and a half of testimony in four packed committee rooms in downtown Lansing Wednesday morning and, later in the day, below a packed gallery in the House that broke out in applause upon the bills' passage. The package of bills gives "union members their power back" to make working conditions safer and more dignified, said Rep. Jim Haadsma, D-Battle Creek. "This bill is not about making history," Haadsma said. "It is about restoring the rights of workers from whose work we’ve all benefited." Rep. Abraham Aiyash, D-Hamtramck, accused opponents of the repeal of putting white collar, C-suite executives above workers and their ability to bargain for safe and practical working conditions. "We are restoring the right to work in a safe place," Aiyash said. "We are restoring the right for a living wage. We are restoring the right for dignified retirements." There is no doubt that unions have played a role in building the state's middle class and advocating for safety measures in the workplace, said Rep. Ann Bollin, R-Brighton. But right-to-work laws, she said, are an important tool in increasing a union's accountability and responsiveness to workers. "Forced participation goes against everything we stand for in the United States of America," Bollin said. House Republican Leader Matt Hall of Richland Township warned that the legislation would set back the state economically and reverse progress made in attracting corporations to Michigan. The three-bill package passed along party lines in 56-53 votes. The House legislation approved Wednesday would restore prevailing wage and repeal right-to-work in both the public and private sectors. However, the public sector portion of the new law is expected to be canceled out by the 2018 U.S. Supreme Court decision in Janus v. AFSCME that found mandatory membership fees among public sector unions violated the First Amendment. There was an outcry from superintendents and school groups late Wednesday when a proposed substitute for the right-to-work repeal plan included language that would allow teacher unions to negotiate school start dates and strike during the school year, something that is currently illegal under Michigan law. An additional prevailing wage substitute bill that was eventually pulled back Wednesday afternoon would have required companies that received state subsidies or tax abatements to also pay the prevailing wage, according to House Republicans. The inclusion of the language was a "mistake" that was eventually removed from the bill, said Amber McCann, a spokeswoman for House Speaker Joe Tate, D-Detroit. Hall called the inclusion of the strike language a "hell of a technical error" and accused Democrats of going too far. Whitmer's office, responding to questions about her promise to veto referendum-proof bills, said the governor supported "restoring workers' rights" and would be watching the legislation closely. Haadsma, who chairs the House Judiciary Committee, said Democratic leaders are hoping to get the bill passed through both chambers by the end of the month, prompting the push to have the bill through committee and the House chamber in one day. He indicated some members might be out over the next couple weeks, depriving Democrats of their slim 56-54 majority. "We may not have enough members on the House floor to accomplish what we intend to accomplish," Haadsma said. Lawmakers, stakeholders debate legislation's value Democratic state Rep. Joey Andrews of St. Joseph argued in committee that the right-to-work law currently allows "freeloaders" to benefit from the work of a union without contributing toward dues and undermines unions' abilities to represent members effectively in workplace negotiations with management. Federal law currently requires unions to represent all employees covered by a collective bargaining agreement, whether or not they pay dues. "This is a matter of freeloaders in the system being allowed to take advantage of, bargain for benefits without paying their fair share," said Andrews, an attorney and former policy analyst for the AFL-CIO. "I think we can all agree that fundamental fairness in bargaining is important.” Democratic state Rep. Brenda Carter, speaking on legislation that would restore prevailing wages in government contracts for roads and other infrastructure, argued higher wages, in the long run, save the state money, reaffirms the dignity of Michigan workers and ensures efficient, safe construction. "We do not want to see critical infrastructure projects built by contractors who want to cut costs," Carter said. Republican state Rep. Tom Kunse of Clare argued lawmakers should not be reversing the will of voters expressed about a decade ago, when 57% of voters voted against a constitutional amendment enshrining collective bargaining rights in the state constitution. He also criticized the limited time for testimony and debate ahead of the vote. "This is not a question that should be jammed through," Kunse said, prompting laughter in at least one overflow room among onlookers familiar with how the right-to-work law was introduced and passed in a week during the 2012 lame duck session. Jonas Peterson, CEO for Southwest Michigan First, said his Kalamazoo-based economic development organization operates a corporate site selection organization called Consultant Connect. He said the group repeatedly hears from corporations that the right-to-work law makes Michigan more competitive in the site selection process for businesses looking to invest in the state. "Our organization is not against unions," Peterson said. "In fact, we partner with unions very well. We’re for choice.” Jeannette Bradshaw, who spoke on behalf International Brotherhood of Electrical Workers (IBEW) Michigan state conference, argued in favor of restoring prevailing wage, noting union pay would help retain skilled workers. "As we move more people into the building and construction industry, shouldn’t we pay those workers for the training and expertise they have regardless of whether or not they’re represented by a union?" Jonathan Byrd, president of the South Central Michigan AFL-CIO, noted there weren't the same thousands of people protesting repeal Wednesday of the right-to-work law as there were when it passed in December 2012 when Republicans controlled the Legislature. He called right-to-work "un-American." "We don’t want the government telling two private parties what they can agree to in negotiations," Byrd said. "That’s what right-to-work does.” The debate over right-to-work is about workers' choice, income and labor force growth and offering a competitive business environment in Michigan, said Steve Delie, labor policy director for the Mackinac Center for Public Policy, a conservative think tank based in Midland. Currently, workers have a choice over paying union dues but that would be taken away under the proposed legislation, he said. "They can choose to either join the union if they think it's doing a good job, if it reflects their values, or to not choose to join the union," Delie said. "They may choose not to join because of union political spending, they may choose not to join because they don't think the union does a good job, they may choose not to join for a wide variety of reasons, but we think they should have that choice. Right to work, prevailing wage history In December 2012, then-Republican Gov. Rick Snyder signed right-to-work legislation into law after the bill was moved swiftly through a Republican-controlled Legislature without any normal committee hearings. The law, which currently bans mandated fees for collective bargaining units, was pushed as a way to increase worker freedom and make Michigan a more business-friendly state. Passage of the law in 2012 came after a constitutional amendment seeking to protect the right to organize and bargain collectively failed at the ballot box with 57% of voters opposed. The vote on right to work, which proceeded without any committee hearings, drew thousands of protestors to the Capitol. The Detroit News reported in December that the effect of the right-to-work law in Michigan is an issue of debate since wages have fluctuated with inflation and union membership nationally has decreased. Unionization rates in Michigan's private sector over the past decade dropped from 11.3% in 2012 to 9.1% in 2021, according to data from researchers at Georgia State University and Trinity University. When including public sector workplaces Michigan’s overall unionization rate dropped from 16.6% in 2012 to 13.3% in 2021. In that time frame, wages have risen, according to the Bureau of Labor Statistics. The average weekly wage at the end of 2012 was $954, compared with $1,290 at the end of 2021 — the equivalent of $1,062 in 2012, when adjusted for inflation. In Ohio, where there is no right-to-work law, the average weekly wage, when adjusted for inflation, grew 13% compared to Michigan’s 11%. Like Michigan, Ohio's overall rate of union membership dropped, from 13.4% in 2011 to 12% in 2021. The GOP-led Legislature in June 2018 voted to repeal a prevailing wage law that required contractors to pay union-level wages for workers on state-contracted projects. The policy was sent to lawmakers through a petition drive designed to bypass the veto pen of Snyder, who did not favor the repeal. Instead of putting the question to voters, the Republican-led Legislature adopted the measure. Opponents of prevailing wage argued the measure artificially inflated the cost of state projects since union workers are largely paid more than non-union workers. But the effect of the prevailing wage repeal over the past four years has been curbed by federal law that requires union-level pay on federally aided projects and by an order from Whitmer in 2021 partially restoring prevailing wage through an executive edict. Whitmer ordered her state Department of Technology, Management and Budget in October 2021 to require contractors and subcontractors on jobs worth over $50,000 to pay their employees the prevailing wage. The order was challenged but ultimately upheld by the Michigan Court of Claims. eleblanc@detroitnews.com Staff Writers Craig Mauger and Riley Beggin contributed. View Comments 7 "Legal Discounts" Seniors Only Get If They Ask - Click Here To See Claim these new discounts before they expire! Senior Discounts By National Penny | Ad Cardiologist: Too Much Belly Fat? Do This Before Bed WeightLoss | Ad Silence Tinnitus by Doing This Once Daily - It's Genius Healthy Guru | Ad Why Didn't Anybody Tell Me iPhones Can Block Ads (Here Is How) Removing ads is the first step to speeding up your browsing, protecting your privacy and saving on data costs. 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